By Akinnodi Francis, Ondo
Experts have praised the Nigerian government’s financial inclusion efforts, highlighting Fintech’s significant role in reducing the number of unbanked individuals in the country.
Financial consultant Tunji Adepeju commended the government and relevant agencies for ensuring access to banking and financial services, particularly in rural areas.
“At least one will remember, even when we talk about community banks of those days. Now, we have other banks located virtually in every segment of the country,” he said.
He also highlighted NIRSAL, a Central Bank-sponsored initiative in collaboration with NIPOST, which utilizes post offices in rural communities to provide financial services.
Adepeju noted that one of the latest innovations in financial inclusion is the USSD service, allowing users with basic feature phones to transfer and receive money.
USSD (Unstructured Supplementary Service Data) enables real-time communication between a phone and a mobile network operator’s system, commonly used for banking and other services.
Reports indicate that in the first half of 2024, Nigerians transacted N2.19 trillion via USSD, a significant increase from the 515 million USSD transactions recorded in 2022.
Adepeju emphasized that nearly anyone with a mobile phone can now conduct transactions and check their account balance without visiting a bank. However, he urged financial service providers, particularly deposit money banks, to enhance their services.
Another financial expert, Sola Famakinwa, stated that financial inclusion ensures individuals and businesses have access to financial products tailored to their needs.
“Financial inclusion is a key enabler for achieving sustainable development goals, reducing extreme poverty, and driving Nigeria’s digital transformation,” he said.
Famakinwa advised the government to strengthen its monetary policies to increase participation in formal digital financial services. He also lauded the Nigerian Financial Inclusion Strategy (NFIS) for setting a goal to reduce financial exclusion by 25% and urged the government to review interest rates and related policies.
Financial analyst Taiwo Owoeye described financial inclusion as the provision of financial services to all individuals and businesses, regardless of income level, location, or social status.
“The goal is to ensure everyone has access to basic digital financial services, including savings accounts, credit facilities, payment systems, insurance, and investment opportunities,” he said.
Owoeye emphasized that financial inclusion is essential for digital transformation and can help reduce poverty and inequality. He urged the government to implement policies and structures to ensure nationwide financial inclusion.
He also highlighted the importance of financial education, recommending a nationwide literacy program to educate citizens, especially those in rural areas, about the benefits and risks of financial services.
“Incentives and subsidies could further strengthen the government’s efforts,” he added.
A petty trader, Adenike Aderemi, shared her experience with financial inclusion, stating that using a Fintech app had transformed her business transactions.
“Before, I had to rely on others to collect my money, and sometimes they delayed giving it to me. Now, I can keep my income safe in my account and withdraw it anytime without depending on a third party,” she said.